Parliament Street, Allahabad Bank: M.K. Gupta, Manager; A. K. Vohra, Senior Manager (Bancassurance), Parliament Street, New Delhi; A. Sharma, Senior Manager, LIC of India
Starting off on a cautious note, discussions bring out ideas from fertile minds that push the boundaries of legality to another level. A clear case which shows that stiff targets can lead to shady deals through an unholy alliance between the bank and the insurance company.
Entering this busy branch of Allahabad Bank on Parliament Street, the Cobrapost journalist asks for the top man. He is on leave. Our reporter is directed to the desk of M.K. Gupta who is filling in for the branch head. We present our case bluntly: A minister wants to invest Rs. 60–70 lakh for a long term, in his wife’s name. More money is coming in March. There should be no TDS. We don’t want FDs either; we would like to invest in LIC.
Yes, he can offer LIC schemes.
We agree to invest in LIC. As the banker gets on the phone to speak with the LIC official, we ask him to tell the fellow that it is all in cash. Should the cash be routed through the account or invested directly? Gupta asks us if we have PAN, and it would sure be required to make it happen.
We ask if the PAN would be disclosed. He nods to say no.
He gets through on the phone, and asks one Mr. Vohra to come to the branch. A. K. Vohra, a senior manager with Allahabad Bank, looks after the bank’s insurance business.
We exchange numbers, and come to know Gupta is retiring in March.
We are expecting the big cash in March. Can you provide us a locker to park all the cash?
“Haan koi baat nahin … bahut hain (No problem, we have many).”
A. Vohra arrives, along with another person, A. Sharma, a senior manager with the LIC of India.
Gupta briefs Vohra on our proposition: “Inko 60 lakh rupaya lagana hai aur aise scheme chahte hain … jahan TDS na kate (He wants to invest Rs. 60 lakh and in such a scheme in which there is no TDS).”
We move into the privacy of a room with Vohra and Sharma. We explain the background to them. In no case should the minister’s name come to light, we make it clear. That is why the money has to be invested in the name of the minister’s wife.
“Samajh gaya (I understand),” says an understanding Sharma.
We play the first card: It is in all cash. That is the problem. Now, you have to figure it out if it should be invested through accounts or directly.
Proffers Vohra: “Cash mein nahin hoga … account ke through hi hoga (It won’t be in cash … will be only through the account).”
So, do we open the three accounts here?
Vohra agrees. He thinks a bit to ask: “Unke paas ek number ka paisa to kuch hoga (Do you have some white money)?”
We say we do, but we don’t want other account to be linked to this investment. Rs. 1–2 crore cash is lying at home. Safety of the method is our prime concern, so don’t dilute it. We implore.
Both the officials appreciate our point, as serious-looking Sharma comes up with an idea: “Safety zaroori hai … aap dekhiye … ek toh aap yahan account open karwa lijiye … usmein paise dalwaiye … uske through… humein mil jayega … aap account band kara dijiye baad mein (Safety is important … see what you can do is open your account here … get the money put in that account … we will get the money through it … you can close the account later).” That would not leave many footprints.
Asks Sharma: “PAN card mil jayega (Can you give us the PAN card)?”
Try to avoid using the PAN, we say, because it would be linked to our accounts with other banks. Would we get all our money back in white?
Yes, we are told, it would be paid by cheque. In other words, what we would receive in return would be white.
As the conversation moves on to such topics as the avocation of the reporter, Gupta enters the room. We now come to know that Vohra is a manager with Allahabad Bank whose job is to manage LIC business and mutual funds.
When our reporter says we have to tread with caution and thus making all necessary inquiries, Gupta suggests a bright idea: “Do-teen bank branch mein account khulwa doonga (I will get accounts opened in two-three branches of our bank for you).”
Vohra reiterates what his colleague promises: “Do-teen branch mein account khulwa doonga … 9-9 lakh ke (We will get you accounts opened in two-three branches … of Rs. 9 lakh each).”
Gupta corrects Vohra: “9.99 ke (Rs. 9.99 lakh).”
In other words, it would be kept below the reporting threshold.
We inform the bankers and the insurer that we could manage two different addresses, if required, with requisite documents. Then, we discuss the demerits of investing in FD, as it would not only have TDS but would also require the PAN. So, we would like to invest in this LIC scheme, as there would be no need for PAN card.
Vohra makes the decision: “Account pehle kholna hai (First we have to open the accounts).”
Our reporter invites them over to meet the minister, and they request to fix the same in day time.
We will try, says the reporter, and asks them if there would be a problem in routing the money through the account.
Vohra is quick to answer: “Account se banker’s cheque bana lenge (We will make out a banker’s cheque from the account).”
As discussions are moving on the right path, we exchange numbers with Vohra.
They should only use methods that have already been employed, we stress, and have proved to be safe. All agree.
We again ask for lockers to park the big cash.
Gupta says: “Locker mil jayega … locker mein koi problem nahin … bahut hain locker (You will get lockers … no problem … there are plenty of lockers).”
Vohra too reiterates: “Locker toh bahut hain (There are plenty of lockers).”
Sharma sums up the scheme for us: “Ek toh TDS nahin katega … sub kuch white pe ayega … koi problem nahin (First there will be no TDS … all will come in white … there is no problem).”
Vohra is eager to know the name of the minister our reporter is representing. We avoid the answer; instead, we ask him to keep all under wraps.
He share with us some more vignettes: “Na agent hai … na humare koi personal interest hai… humhare target hote hain … hum chahte relationship hain … relationship hi kaam aati hai (There are no agents … we have no personal interest … we have some targets … all we want is build relationships … after all it the relationship which is helpful).”
Does it all boils down to garnering as much business as required to meet these targets, even if the bankers and insurers use unscrupulous means? We won’t surmise.
Now, what follows is a recap of how all our cash would find a safe haven with the help of the bankers and the insurer.
Vohra and Gupta discuss: “Nau lakh account mein aur nau lakh ka hi instrument issue kar denge (We put Rs. 9 lakh in the accounts and issue instruments for Rs. 9 lakh).”
Gupta reiterates: “Haan, haan … 5–6 instruments (Yes, yes … 5–6 instruments).”
Vohra elaborates: “5–6 instruments alag alag dates mein … alag alag dates mein karenge … alag alag branch se karayenge aur alag alag family member bhi chaho wo bhi kara denge (We will get [you] 5–6 instruments on different dates … we will get them from different branches, and if you wish also in the names of different family members).”
Sharma comes up with a new plan: “Aap ye bhi kar sakte hain … jiska aap karayenge unka naam pe assign karaalo us se (You can also do this … in whomsoever’s name you get [buy] these [instruments], you can have them assign in your name).”
We ponder over the idea. Is this a sort of authorisation?
Vohra helps us to understand: “Jinka aap karwaenge … unke naam pe assign kara lo use … aap sign karwa lenge … legally unke naam ho jayegi … maturity jab hogi … wo (In whose names you would buy [instrument], you would get it assigned in your name … legally, it would be in their names … [but] when there maturity [of the instruments] arrives …).”
The picture on the complex benami canvas becomes clear. The assignee can then withdraw the returns. We present our clarification: Which means that if we have the account in the name of the driver, this assignment means the driver cannot withdraw?
Assures Vohra with a smile: “Sub bata doonga (I will tell you everything).”
Gupta makes the big moment: “Sir, galat kaam Allahabad Bank mein nahin hota (Sir, we in Allahabad Bank don’t indulge in wrongful acts).”
Having finished our tea, we get up. There are smiles all over on a scheme well thought out. We ask Gupta if the cash can be counted before we move it into the lockers.
“Sub ho jayega … aap ki presence mein count karayenge (It will all be done … will get it counted in your presence).”
We part on a happy note.
On being contacted by the Cobrapost reporter for his reaction to the expose, he was not willing to accept cash and says everything will be done following the KYC procedures.
